What Are the Advantages and Disadvantages of Private Lease?

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(Newswire.net — February 15, 2022) — A new car costs on average almost 35,000 euros, this is a considerable amount that many people cannot afford. Leasing a car is then an option to drive a new car, but until a few years ago leasing was only possible for employees of a company. As a private driver, it was of no use to you. But that has changed because thanks to private lease, people like you and me can now drive a new car.

Advantages of private lease

Leasing a car is therefore no longer reserved for business drivers. Nevertheless, private lease as a product has been known for a long time. It is actually a full operational lease but for private individuals. The advantages are the same: the car is and remains the property of the leasing company, which takes care of maintenance, insurance, possible damage settlement, and road tax. Additional matters such as breakdown assistance, replacement transport, and passenger insurance are often part of the lease contract. More and more consumers are therefore opting for the advantages of leasing a car privately, a development that fits in with the movement from car ownership to car use. Yet we remain a frugal people because it is especially the small city cars that are popular as private lease cars. In the list of most popular lease cars for private individuals, we find, for example, the Volkswagen Polo, Kia Picanto, Toyota Aygo, Ford Focus, and Peugeot 108.

Disadvantages of private lease

Despite all the advantages of the private lease, it is still wise to look at the disadvantages as well because there certainly are some. Many offers seem attractive, but in the end, someone has to make money from them somewhere. To begin with, it is important to look at the contract duration. Many contracts have a term of a few years, for example, 5 years. Ask yourself if you can oversee that period. Are you just moving in together? Then in 5 years, you may have children and you want a bigger car. But of course, there are countless other reasons for wanting to get rid of your lease contract. Think of a different job, relocation or divorce. Whatever the reason, canceling your lease contract early can cost a lot of money.

Also, check how many kilometers you are allowed to drive annually. The border is often around 10,000 kilometers and that is just too little for many people. If you drive more, then you have to pay extra. You really have to keep track of how many kilometers you drive and maybe conclude halfway through the year that you can visit family less often than you are used to. Finally, a private lease is included in the application for a mortgage. So if you also want to buy a house in the short term, it is better not to lease a car. In addition, private leasing is not the cheapest way to drive a car anyway. Do you really want a car for a rock-bottom price? Then simply buy a second-hand car that drives you at an affordable price.

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